FPA welcomes red tape removal on licences

Applying for an Australian financial services (AFS) licence should be more efficient and involve less paperwork from this week, a move applauded by the Financial Planning Association (FPA).

Revisions to ASIC’s regulatory guidance for AFS licence applicants removes the requirement to submit paper versions of documents lodged online.

Under the changes, applicants for an AFS licence will no longer be required to lodge the signed application form and the supporting documentation in paper text, allowing applicants to submit these documents electronically, and certified true copies of background credential checks known as ‘People Proofs’.

Updated guidance to reflect these changes is set out in Regulatory Guide 1 AFS Licensing Kit: Part 1 – Applying for and varying an AFS licence (RG 1), Regulatory Guide 2 AFS Licensing Kit: Part 2 – Preparing your AFS licence or variation application (RG 2), and Regulatory Guide 3 AFS Licensing Kit: Part 3 – Preparing your additional proofs (RG 3).

The removal of the requirement to lodge paper versions of the applications and supporting documentation, and the certified copies of the ‘People Proofs’ will simplify and streamline the AFS licensing process.

FPA CEO Mark Rantall welcomed the change and called on the regulator to remove unnecessary red tape wherever it encountered it.

ASIC Commissioner, Greg Tanzer, said the updates would save industry time and money, especially important for small business operators.

“These updates reflect our commitment to efficient registration and licensing, essentially cutting red tape for business. We will also continue to review our policies and procedures to improve efficiency dividends for business where we can,” he said.

The updated guidance provides current and prospective licence applicants with ASIC’s requirements for the AFS Licence application process and requirements for the preparation of ‘People Proofs’.

The updated guidance took effect on Tuesday 12 June 2012.